UAE Consumers Cut Spending Amid War and Fuel Price Hike

Consumer spending in the UAE has moved to "defensive mode" with nearly two-thirds of households cutting discretionary purchases and building savings buffers due to ongoing geopolitical uncertainty. Discretionary spending on electronics, home furniture, and clothing has seen a 35-38% reduction in purchases. Luxury and big-ticket purchases are the hardest hit, with 70% of consumers curtailing purchases. The UAE government has announced a fiscal support package and fuel price hike to cushion businesses and residents.